A&E Network To Acquire Lifetime, Merging Cable Giants

   DOW JONES NEWSWIRES 
 

A&E Television Networks will acquire Lifetime Entertainment Services in a deal that will consolidate three of the U.S.'s major cable networks.

The deal comes as cable television has been one of the few media outlets to not be walloped by slumping advertising, as the bulk of their revenue companies comes from subscriber fees.

Included in the merger are 10 brands and more than 20 Web sites, with the combined networks expected to reach more than 250 million homes worldwide in more than 40 countries.

A&E is part owned by Walt Disney Co. (DIS) and NBC Universal, a unit of General Electric Co. (GE), while Lifetime is owned by Disney and Hearst Corp.

Abbe Raven, president and chief executive of AETN, will head up the combined company. Andrea Wong, president and CEO of Lifetime, will continue to run the Lifetime networks and report to Raven. The current leaders of the A&E Network and Biography Channel, as well as History and History International, will continue to run those operations.

Terms weren't disclosed for the deal, but NBC Universal may opt or be required to exit the venture during the next 15 years. If that happens, Disney and Hearst would be 50-50 co-owners.

Disney and Hearst have been longtime partners, with them owning 80% and 20%, respectively, of cash cow ESPN.

-By Tess Stynes, Dow Jones Newswires; 212-416-2481; [e-mail]